Buyers in Thurston County, WA (which include Olympia, Lacey, Tumwater and Yelm) are seeing higher home prices but are enjoying near-historic low interest rates, making homes more affordable now than last year at this time.
The average home price in Thurston County, WA is $371,323, up 4 percent from last year. But because interest rates have plummeted 1 percent from last year, buyers are seeing their dollars go further.
The average-priced home of $371,323 with the national average 30-year mortgage rate of 3.55% realizes a monthly principal and interest payment of $1,678 (taxes and insurance would increase this number). Comparing the average home price and interest rate last year, buyers today are paying $130 less per month in principal and interest. (Source for mortgage rates is from http://www.freddiemac.com/pmms/ . The average commitment rate quoted of 3.55% also has an average of 0.5 percent in fees/points.)
The Take-Away
Buyers – homes are more affordable this summer than last summer and the low interest rates are taking a good bite out of the higher home prices for you. Your buying power has surged!
Sellers – you still need to price for the market conditions but the buyer pool is widening as more buyers can afford more. And many buyers are waiting for your home to get on the market!
Current Homeowners – you may want to consider refinancing at these lower rates if you plan on staying in your home for several years. Talk to your mortgage professional and CPA about the best options for you.
If you are planning to make a move this year, contact me today! I specialize in working with both buyers and sellers in Thurston County, WA (Olympia, Lacey, Tumwater, and Yelm).